Interagency Guides on the SAFE Act

1. [BILLING CODES: 4810-33-P 16.66%; 6210-01-P 16.66%; 6714-01-P 16.66%; 6720-01-P 16.66%;
6705-01-P 16.66%; 7535-01-P 16.66%]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
Docket ID OCC-2010-___
RIN 1557-AD23
FEDERAL RESERVE SYSTEM
12 CFR Part 208
Docket No. R-1357
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 365
RIN 3064-AD43
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 563
Docket No. 2009 - 0004
RIN 1550-AC33
FARM CREDIT ADMINISTRATION
12 CFR Part 610
RIN 3052-AC52
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 741 and 761
RIN 3133-AD59
Registration of Mortgage Loan Originators
AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors
of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC); Office
of Thrift Supervision, Treasury (OTS); Farm Credit Administration (FCA); and National Credit
Union Administration (NCUA).
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2. ACTION: Final rule.
SUMMARY: The OCC, Board, FDIC, OTS, FCA, and NCUA (collectively, the Agencies) are
adopting final rules to implement the Secure and Fair Enforcement for Mortgage Licensing Act
(the S.A.F.E. Act). The S.A.F.E. Act requires an employee of a bank, savings association, credit
union or Farm Credit System (FCS) institution and certain of their subsidiaries that are regulated
by a Federal banking agency or the FCA (collectively, Agency-regulated institutions) who acts
as a residential mortgage loan originator to register with the Nationwide Mortgage Licensing
System and Registry, obtain a unique identifier, and maintain this registration. The final rule
further provides that Agency-regulated institutions must: (1) require their employees who act as
residential mortgage loan originators to comply with the S.A.F.E. Act‟s requirements to register
and obtain a unique identifier, and (2) adopt and follow written policies and procedures designed
to assure compliance with these requirements.
DATES: This final rule is effective on [INSERT FIRST DATE OF CALENDAR QUARTER
60 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER]. Compliance with
§ __.103 of the final rule (registration requirement) is required by the end of the 180-day period
for initial registrations beginning on the date the Agencies provide in a public notice that the
Registry is accepting initial registrations.
FOR FURTHER INFORMATION CONTACT:
OCC: Michele Meyer, Assistant Director, and Heidi Thomas, Special Counsel, Legislative and
Regulatory Activities, (202) 874-5090, and Nan Goulet, Senior Advisor, Large Bank
Supervision, (202) 874-5224, Office of the Comptroller of the Currency, 250 E Street SW.,
Washington, DC 20219.
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3. BOARD: Anne Zorc, Counsel, Legal Division, (202) 452-3876, Virginia Gibbs, Senior
Supervisory Analyst, (202) 452-2521, and Stanley Rediger, Supervisory Financial Analyst, (202)
452-2629, Division of Banking Supervision and Regulation, Board of Governors of the Federal
Reserve System, 20th and C Streets, N.W., Washington , D.C. 20551
FDIC: Thomas F. Lyons, Examination Specialist, (202) 898-6850, Victoria Pawelski, Senior
Policy Analyst, (202) 898-3571, or John P. Kotsiras, Financial Analyst, (202) 898-6620,
Division of Supervision and Consumer Protection; or Richard Foley, Counsel, (202) 898-3784,
or Kimberly A. Stock, Counsel, (202) 898-3815, Legal Division; Federal Deposit Insurance
Corporation, 550 17th Street, N.W., Washington, DC 20429.
OTS: Charlotte M. Bahin, Special Counsel (Special Projects), (202) 906-6452,
Vicki Hawkins-Jones, Special Counsel, Regulations and Legislation Division, (202) 906-7034,
Debbie Merkle, Project Manager, Credit Risk, (202) 906-5688, and Rhonda Daniels, Senior
Compliance Program Analyst, Consumer Regulations, (202) 906-7158, Office of Thrift
Supervision, 1700 G Street, NW., Washington, DC 20552.
FCA: Gary K. Van Meter, Deputy Director, Office of Regulatory Policy, Farm Credit
Administration, 1501 Farm Credit Drive, McLean, VA, (703) 883-4414, TTY (703) 883-4434;
Richard A. Katz, Senior Counsel, Office of General Counsel, Farm Credit Administration,
McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-4020; or Jennifer Cohn, Senior
Counsel, Office of General Counsel, Farm Credit Administration, McLean, VA 22102-5090,
(703) 883-4020, TTY (703) 883-4020.
NCUA: Regina Metz, Staff Attorney, Office of General Counsel, 703-518-6561; or Judy
Graham, Program Analyst, Division of Supervision, Office of Examination and Insurance, 703-
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4. 518-6360, National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-
3428.
SUPPLEMENTARY INFORMATION:
I. BACKGROUND
A. Statutory Requirements
The S.A.F.E. Act,1 enacted on July 30, 2008, mandates a nationwide licensing and
registration system for mortgage loan originators. Specifically, the Act requires all States to
provide for a licensing and registration regime for mortgage loan originators who are not
employed by Agency-regulated institutions within one year of enactment (or two years for States
whose legislatures meet biennially). In addition, the S.A.F.E. Act requires the OCC, Board,
FDIC, OTS and NCUA,2 through the Federal Financial Institutions Examination Council
(FFIEC), and the FCA to develop and maintain a system for registering mortgage loan
originators employed by Agency-regulated institutions. The S.A.F.E. Act specifically prohibits
an individual from engaging in the business of residential mortgage loan origination without first
obtaining and maintaining annually: (1) a registration as a registered mortgage loan originator
and a unique identifier if employed by an Agency-regulated institution (Federal registration), or
(2) a license and registration as a State-licensed mortgage loan originator and a unique
identifier.3 The S.A.F.E. Act requires that Federal registration and State licensing and
1
The S.A.F.E. Act was enacted as part of the Housing and Economic Recovery Act of 2008, Pub. L. 110-
289, Division A, Title V, sections 1501 – 1517, 122 Stat. 2654, 2810 – 2824 (July 30, 2008), codified at 12 U.S.C.
5101- 5116. Citations in this Supplementary Information section are to the “S.A.F.E. Act” by section number in the
public law.
2
The OCC, Board, FDIC, OTS, and NCUA are referred to both in the S.A.F.E. Act and in this rulemaking
as the “Federal banking agencies.”
3
If the Secretary of Housing and Urban Development (HUD) determines that any State fails, within the
statutorily prescribed timeframe, to establish a licensing regime that meets the requirements of the S.A.F.E. Act, the
4

5. registration must be accomplished through the same online registration system, the Nationwide
Mortgage Licensing System and Registry (Registry).
In connection with the Federal registration, the Agencies at a minimum must ensure that
the Registry is furnished with information concerning the mortgage loan originator‟s identity,
including: (1) fingerprints for submission to the Federal Bureau of Investigation (FBI) and any
other relevant governmental agency for a State and national criminal history background check;
and (2) personal history and experience, including authorization for the Registry to obtain
information related to any administrative, civil, or criminal findings by any governmental
jurisdiction.4 On June 9, 2009, the Agencies issued a notice of proposed rulemaking to
implement these requirements for Agency-regulated institutions.5
B. Implementing the Requirements for Federal Registration
The Conference of State Bank Supervisors (CSBS) and the American Association of
Residential Mortgage Regulators (AARMR) have developed and maintain a Web-based system,
the Nationwide Mortgage Licensing System (NMLS), for the State licensing of mortgage loan
originators in participating States.6 Mortgage loan originators in these States electronically
Secretary is required to establish a system for the licensing and registration of mortgage loan originators in that
State. S.A.F.E. Act at section 1508. See HUD proposed rule implementing this requirement at 75 FR 66548 (Dec.
15, 2009). HUD has reviewed the model legislation developed by the Conference of State Bank Supervisors and the
American Association of Residential Mortgage Regulators to assist States in meeting the minimum requirements of
the S.A.F.E. Act and found it to meet these requirements. See 74 FR 312 (Jan. 5, 2009) and
http://www.hud.gov/offices/hsg/ramh/safe/cmsl.cfm.
4
S.A.F.E. Act at section 1507(a) (12 U.S.C. 5106(a)).
5
74 FR 27386 (June 9, 2009).
6
As of the date of this final rule, 48 States and territories use the NMLS to manage the processing of their
mortgage licenses. This system is owned and operated by the State Regulatory Registry LLC (SRR), which is a
limited-liability company established by CSBS and the American Association of Residential Mortgage Regulators as
a subsidiary of CSBS to develop and operate nationwide systems for State regulators in the financial services
industry. SRR has contracted with the Financial Industry Regulatory Authority (FINRA) to build and maintain the
system. FINRA operates similar systems in the securities industry. More information about this system is available
at http://www.stateregulatoryregistry.org.
5

6. complete a single uniform form (the MU4 form). The data provided on the form is stored
electronically in a centralized repository available to State regulators of mortgage companies,
who use it to process license applications and to authorize individuals to engage in mortgage
loan origination, as well as for other supervisory purposes.
The Federal banking agencies, through the FFIEC, and the FCA are working with CSBS
to modify the NMLS so that it can accept registrations from mortgage loan originators employed
by Agency-regulated institutions. This modified registry will be renamed the Nationwide
Mortgage Licensing System and Registry. The existing NMLS was not designed to support the
Federal registration of Agency-regulated institution employees, who are not required to obtain
additional authorization from the appropriate Federal agency to engage in mortgage loan
origination activities that are permissible for the Agency-regulated institution. Accordingly, the
system must be modified to accommodate the differences between the requirements for State
licensing/registration and Federal registration. It also must be modified to accommodate the
migration of an individual between the State licensing/registration and the Federal registration
regimes or the dual employment of an individual by both an Agency-regulated institution and a
non-Agency-regulated institution.7 Furthermore, the S.A.F.E. Act requires new enhancements to
the current system, such as the processing of fingerprints and public access to certain mortgage
loan originator data. These modifications and enhancements require careful analysis and raise
complex legal and system development issues that the Agencies are addressing both through this
rulemaking and through consultation with the CSBS and the SRR. The OCC, on behalf of the
7
The Agencies note that some employees of Agency-regulated institutions may also be subject to the State
licensing and registration regime. For example, employees who act as mortgage loan originators for a bank and a
nondepository subsidiary of a bank holding company that is not a subsidiary of a depository institution would be
subject to both the Federal and State regimes.
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7. Agencies, has entered into an agreement with the SRR that will provide for appropriate
consultation between the Agencies and the Registry concerning Federal registrant information
requirements and fees, system functionality and security, and other operational matters. The
issuance of this final rule establishing the requirements for Federal registrants will enable the
Agencies and SRR to complete modifications that will enable the system to accept Federal
registrations. As described in the SUPPLEMENTARY INFORMATION section of the proposed
rule, the Agencies will publicly announce the date on which the Registry will begin accepting
Federal registrations, which will mark the beginning of the period during which employees of
Agency-regulated institutions must complete the initial registration process.8 When fully
operational, mortgage loan originators and their Agency-regulated institution employers are
expected to have access to the Registry, seven days a week, to establish and maintain their
registrations.
II. OVERVIEW OF THE PROPOSAL AND PUBLIC COMMENTS
The proposed rule required individuals employed by Agency-regulated institutions who
act as mortgage loan originators and who do not qualify for the de minimis exception set forth in
the proposal to register with the Registry, obtain unique identifiers, and maintain their
registrations through updates and renewals. The proposal also directed Agency-regulated
institutions to require compliance with these requirements, and to adopt and follow written
policies and procedures to assure such compliance. The S.A.F.E. Act does not require the
Registry to screen or approve registrations received from employees of Agency-regulated
institutions and the Registry will not do so. Instead, the Registry will be the repository of, and
8
Pursuant to section 1503(11) of the S.A.F.E. Act (12 U.S.C. 5102(11)), Agency-regulated institutions and
their employees who are acting within the scope of their employment with the Agency-regulated institutions are not
subject to State licensing or registration requirements for mortgage loan originators.
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8. conduit for, information on those employees who are mortgage loan originators at Agency-
regulated institutions. Pursuant to §§ ___.104(d) and (h) of the proposed rule, it would be the
responsibility of each Agency-regulated institution to establish reasonable procedures for
confirming the adequacy and accuracy of employee registrations as well as to establish a process
for reviewing any criminal history background reports received from the Registry.
The proposal provided for a 180-day period within which to complete initial registrations
after the Registry is capable of accepting registrations from employees of Agency-regulated
institutions. During this period, employees of Agency-regulated institutions would not be
subject to sanctions if they originate residential mortgage loans without having completed their
registration.
The Agencies received over 140 different comment letters from financial institutions and
holding companies, trade associations, Federal government agencies, a training company, and
individuals. A number of Agency-regulated institutions objected to the registration requirement
in general, suggesting that the registration requirement should not be applied to them because
they were not involved in the abuses that led to the enactment of the S.A.F.E. Act. In addition,
many of these commenters found the registration requirement overly burdensome, especially as
they are subject to regular examinations by the Agencies and they already closely supervise the
activities of their employees.
Many commenters raised concerns related to the proposed de minimis exception from the
registration requirement. Under the proposed de minimis exception, a mortgage loan originator
would not have to register if he or she acted as a mortgage loan originator for five or fewer loans
and the Agency-regulated institution employs mortgage loan originators who, while excepted
from registration pursuant to the individual exception, in the aggregate acted as mortgage loan
8

9. originators in connection with 25 or fewer residential mortgage loans. Commenters suggested
raising the mortgage loan originator and institution loan limits or eliminating one of the limits.
Community bank trade associations were particularly concerned that the narrowness of the
exception would exclude most community banks. Some commenters suggested that the
exception should be tied to an asset-based threshold in the range of $250 million to $1 billion.
Most commenters objected to having employees who engage in loan modifications or
assumptions register under the rule, noting that these activities are fundamentally different than
the mortgage loan origination process in that loan modifications and assumptions: (1) are loss
mitigation activities, not loan originations; (2) provide loan modification or assumption
personnel little to no discretion in negotiating the terms and conditions of any changes; and (3)
are outside of the Congressional intent and the plain language of the S.A.F.E. Act.
While some commenters found the 180-day initial registration period adequate, a number
of commenters suggested alternative periods ranging up to one year. Some trade associations
and institutions supported staggering registration periods in order to reduce system demands and
to tailor an implementation schedule to the particular capacities of an institution or group of
institutions, as long as the implementation period would still be 180 days for each institution.
A number of commenters also raised issues related to the provision of fingerprints to the
Registry. Commenters asserted that it was not appropriate to have an age limit on fingerprints as
they tend not to change; that the Registry should be able to accept fingerprints in a variety of
formats, such as paper and scanned digital prints; and that Agency-regulated institutions should
be permitted to use existing channels to process fingerprints.
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10. Many commenters expressed privacy and security concerns regarding the types of
personal information that mortgage loan originators would have to provide to the Registry and
the ability of the public to have Internet access to such information.
Trade associations and large Agency-regulated institutions overwhelmingly requested
that the Registry accommodate batch processing of registrations in order to reduce the costs and
burden of data input, reduce errors, and efficiently register bank employees.
The Agencies have modified the proposal to take into account many of these comments.
A detailed discussion of these comment letters and the Agencies‟ responses to them appears in
the section-by-section description of the final rule that follows.9
III. SECTION-BY-SECTION DESRIPTION OF THE FINAL RULE
Section ___.101 – Authority, purpose, and scope
The Agencies adopt paragraphs (a) and (b) of § ____.101 as proposed.10 Paragraph (a)
identifies the authority for this rule as the S.A.F.E. Act.11 Paragraph (b) states that this rule
implements the S.A.F.E. Act‟s Federal registration requirements, which apply to individuals who
originate residential mortgage loans. This provision also describes the objectives of the S.A.F.E.
Act, which are derived from section 1502 of the Act (12 U.S.C. 5101).
As in the proposal, paragraph (c)(1) of § ___.101 of the final rule identifies the specific
entities that employ individual mortgage loan originators – entities referred to in this
9
In addition to the changes described in this Supplementary Information section, the Agencies have
replaced the cites in the proposed rule to sections of the S.A.F.E. Act with cites to the relevant provisions in the U.S.
Code.
10
Because each Agency‟s proposed rule will amend a different part of the Code of Federal Regulations, but
will have similar numbering, relevant sections are cited as “§ ___.” followed by a number, unless otherwise noted.
11
The Board and the OCC note that the authority in paragraph (a) of their respective rules supplements
their authority to implement the S.A.F.E. Act, for example, Section 11 of the Federal Reserve Act (12 U.S.C.
248(a)) for the Board and section 5239A of the Revised Statutes (12 U.S.C. 93a).
10

11. SUPPLEMENTARY INFORMATION section as Agency-regulated institutions – and that also
are covered by this rule. Under the S.A.F.E. Act, a mortgage loan originator must be Federally-
registered if that individual is an employee of a depository institution, an employee of any
subsidiary owned and controlled by a depository institution and regulated by a Federal banking
agency, or an employee of an institution regulated by the FCA.12 Section 1503(2) of the
S.A.F.E. Act (12 U.S.C. 5102(2)) provides that “depository institution” has the same meaning as
in section 3 of the Federal Deposit Insurance Act (FDI Act),13 and includes any credit union. As
we noted in the proposal, the definition of “depository institution” in the FDI Act and in the
S.A.F.E. Act does not include bank or savings association holding companies or their non-
depository subsidiaries. Employees of these entities who act as mortgage loan originators are not
covered by the Federal registration requirement and, therefore, must comply with State licensing
and registration requirements.
With respect to the OCC, this rule applies to national banks, Federal branches and
agencies of foreign banks, their operating subsidiaries, and their employees who are mortgage
loan originators.14 For the Board, this rule applies to member banks of the Federal Reserve
12
Agency-regulated institutions and their employees acting within the scope of their employment are
subject only to the Federal registration requirements of the S.A.F.E. Act as implemented by the Agencies through
this rulemaking, even if registration in the State system is available before Federal Registration. In consultation with
the Agencies, CSBS/SRR are modifying the Registry so that it can accept registrations from employees of Agency-
regulated institutions. An employee of an Agency-regulated institution may be engaged in activities outside the
scope of his or her employment at an Agency-regulated institution that subject that employee to State licensing and
registration requirements, such as dual employment at a non-Agency-regulated institution.
13
Section 3 of the FDI Act defines “depository institution” as any bank or savings association. The term
“bank” in section 3 of the FDI Act means any national bank, State bank, Federal branch, and insured branch and
includes any former savings association. The term “savings association” means any Federal savings association,
state savings association, and any corporation other than a bank that the FDIC and the OTS jointly determine to be
operating in substantially the same manner as a savings association. 12 U.S.C. 1813.
14
The S.A.F.E. Act's definition of depository institution includes Federal branches of foreign banks but not
Federal agencies of foreign banks. Federal agencies are authorized by sections 1(b)(1) and 4(b) of the International
Banking Act of 1978 (12 U.S.C. 3101(b)(1) and 3102(b)) and 12 CFR 28.11(g) and 28.13(a)(1) of the OCC's
regulations to lend money, which would include originating mortgage loans, subject to the same duties, restrictions,
11

12. System (other than national banks); their respective subsidiaries that are not functionally
regulated within the meaning of section 5(c)(5) of the Bank Holding Company Act, as amended
(12 U.S.C. 1844(c)(5));15 branches and agencies of foreign banks (other than Federal branches,
Federal agencies and insured State branches of foreign banks); commercial lending companies
owned or controlled by foreign banks;16 and their employees who act as mortgage loan
originators. For the FDIC, this rule applies to insured State nonmember banks (including State-
licensed insured branches of foreign banks) and their subsidiaries (except brokers, dealers,
persons providing insurance, investment companies, and investment advisers) and their
employees who are mortgage loan originators. For the OTS, this rule applies to savings
associations and their operating subsidiaries, and their employees who are mortgage loan
originators. For the FCA, this rule applies to FCS institutions that originate residential mortgage
loans under sections 1.9(3), 1.11 and 2.4(a)(2) and (b) of the Farm Credit Act of 1971, as
amended (12 U.S.C. 2017(3), 2019, and 2075(a)(2) and (b)), and their employees who are
penalties, liabilities, conditions, and limitations that would apply to a national bank. Thus, the Federal registration
requirements apply to Federal agencies of foreign banks to the extent the registration requirements apply to national
banks.
15
The S.A.F.E. Act, by its terms, applies the Federal registration requirements to employees of a subsidiary
that is owned and controlled by a State member bank and regulated by the Board. For purposes of the scope of the
Board‟s rules, these subsidiaries are described as those that are not functionally regulated within the meaning of
section 5(c)(5) of the Bank Holding Company Act. Subsidiary has the meaning given that term in section 2 of the
Bank Holding Company Act (12 U.S.C. 1841), as applied to State member banks.
16
The Board notes that its final rule covers branches and agencies of foreign banks (other than Federal
branches, Federal agencies and insured State branches of foreign banks) and commercial lending companies owned
or controlled by foreign banks pursuant to its authority under the International Banking Act (IBA) (Chapter 32 of
Title 12) to issue such rules it deems necessary in order to perform its respective duties and functions under the
chapter and to administer and carry out the provisions and purposes of the chapter and prevent evasions thereof.
12 U.S.C. 3108(a). The Board notes that the IBA provides, in relevant part, that the above entities shall conduct their
operations in the United States in full compliance with provisions of any law of the United States which impose
requirements that protect the rights of consumers in financial transactions, to the extent that the branch, agency, or
commercial lending company engages in activities that are subject to such laws, and apply to State-chartered banks,
doing business in the State in which such branch or agency or commercial lending company, as the case may be, is
doing business. 12 U.S.C. 3106a(1). Under the Board‟s final rule, the above entities would be subject to the same
Federal registration requirements as Federal branches, Federal agencies and insured State branches of foreign banks,
which are covered in the OCC and FDIC rules, respectively.
12

13. mortgage loan originators.17 For the NCUA, this rule applies to credit unions and their
employees who are mortgage loan originators. Because non-federally insured credit unions
generally are not federally regulated institutions, special registration conditions apply to them as
discussed below.
As discussed in Section II, a number of commenters objected to the application of this
registration requirement to employees of Agency-regulated depository institutions because, in
general, they are subject to regular examinations, would be overly burdened by the registration
requirement, and already closely supervise the activities of their employees. Some commenters
noted that this registration requirement would penalize them for the inappropriate actions of
other lenders that led to the enactment of the S.A.F.E. Act.
The Agencies note that the registration of mortgage loan originators employed by
Agency-regulated institutions is explicitly required by the S.A.F.E. Act. The statute imposes a
registration requirement, rather than a licensing requirement, on the employees of Agency-
regulated institutions. The Agencies note that such institutions (other than non-federally insured
credit unions) already are subject to a Federal regime of examination and supervision. The
S.A.F.E. Act does not authorize the Agencies to create exceptions to the registration requirement
other than the de minimis exception described below.
17
Some FCS associations may not exercise their statutory authority to make residential mortgage loans,
and FCS banks no longer engage in residential mortgage origination activities because they have transferred their
direct lending authority to their affiliated associations. The FCA emphasizes that employees of FCS banks and
associations that do not engage in residential mortgage loan origination activities are not subject to the registration
requirements of the S.A.F.E. Act and these regulations. The Federal Agricultural Mortgage Corporation (Farmer
Mac) is an FCS institution that among other activities operates a secondary market for rural residential mortgage
loans. The FCA determines that Farmer Mac employees are not subject to the registration requirements of the
S.A.F.E. Act and these implementing regulations because Farmer Mac does not engage in mortgage loan origination
activities for rural residents. The Farmer Mac secondary market is modeled after Fannie Mae and Freddie Mac, and
the provisions of the S.A.F.E. Act do not expressly apply to employees at Fannie Mae and Freddie Mac.
13

14. Some credit union-related commenters discussed whether the final rule should apply to
credit union service organizations (CUSOs). The NCUA notes that it answered these questions
in a public legal opinion letter 08-0843, dated October 8, 2008, available on NCUA‟s Web site,
www.ncua.gov. The S.A.F.E. Act treats employees of depository institution subsidiaries the
same as employees of the depository institution, if the subsidiary is owned and controlled by the
depository institution and regulated by a Federal banking agency.18 In the case of CUSOs,
however, NCUA does not have direct regulatory oversight or enforcement authority. Instead,
NCUA regulation permits federal credit unions to invest in or lend only to CUSOs that conform
to the limits specified in the CUSO rule, 12 CFR Part 712.19 NCUA has not, historically,
asserted that CUSOs or their employees are exempt from applicable State licensing regimes, and
the S.A.F.E. Act does not alter that approach. Nor do NCUA regulations have any applicability
to CUSOs owned by State-chartered credit unions.20 Accordingly, individuals employed by
CUSOs that engage in residential mortgage loan origination activities, whether the CUSO is
owned by a State or a federal credit union, would need to be licensed in accordance with
applicable State requirements.
Some commenters also asked whether non-federally insured credit unions must register
with the Registry. NCUA‟s proposed rule applied to federally insured credit unions and their
employees who are mortgage loan originators but commenters requested NCUA include non-
federally insured credit unions and their employees who are mortgage loan originators in the
scope of NCUA‟s final rule. The S.A.F.E. Act requires the Agencies to develop and maintain a
18
Section 1503(7)(A)(ii) of the S.A.F.E. Act (12 U.S.C. 5102(7)(A)(ii)).
19
12 CFR Part 712.
14

15. system for registering employees of a depository institution, defined to include “any credit
union.”21 Consistent with the S.A.F.E. Act and in response to comments, NCUA‟s final rule
provides for a system for registering employees of any credit union. NCUA‟s final rule applies
to federally insured credit unions and their employees who are mortgage loan originators and
non-federally insured credit unions and their employees who are mortgage loan originators when
certain conditions are met and formal agreements reached.
When drafting its final rule, NCUA considered that, with the exception of non-federally
insured credit unions, entities covered by the Federal registration system are subject to Federal
oversight. Entities subject to the Federal registration system are labeled throughout the rule as
“Agency-regulated institutions.” Unlike Federal credit unions and federally insured state-
chartered credit unions, non-federally insured credit unions are neither federally insured nor
subject to NCUA‟s oversight. In order for non-federally insured credit unions and their
employees who are mortgage loan originators to qualify for Federal registration, they must be
subject to oversight for purposes of compliance with NCUA‟s rule. Therefore, due to the unique
nature of non-federally insured credit unions compared with all other credit unions, NCUA is
working with State supervisory authorities in those States with non-federally insured credit
unions to implement an oversight program to enable them to participate in the Federal
registration system.
The oversight program will require a State supervisory authority seeking to allow non-
federally insured credit unions in its State to participate in the Federal registration system to
20
In April 2008, the NCUA Board issued a proposed rule that would extend some provisions of the CUSO
rule to state chartered institutions. See 73 FR 23982 (May 1, 2008). The proposal has not yet been finalized.
21
Sections 1507(a)(1) and 1503(1) and (2) of the S.A.F.E. Act (12 U.S.C. 5106(a)(1) and 5102(1) and (2)).
15

16. enter into a memorandum of understanding (MOU) with NCUA. The MOU will need to address
various requirements such as, but not limited to: the requirement for an applicable State
supervisory authority to maintain such an MOU to allow non-federally insured credit unions and
their employees in its State to have continuous access to, and use of, the registry; examination of
the non-federally insured credit unions‟ compliance with the rule by either the State supervisory
authority or NCUA; non-federally insured credit unions‟ payment of examination fees and
payment for any necessary Registry modifications; and enforcement authority and penalties for
non-federally insured credit unions for noncompliance. Any information provided by the
Registry to the public about non-federally insured credit unions and their employees must
include a clear and conspicuous statement that the non-federally insured credit union is not
insured by the National Credit Union Share Insurance Fund.
If any State supervisory authority where non-federally insured credit unions are located
fails to enter into or maintain an agreement with NCUA for this registration process and
oversight, the non-federally insured credit unions and their employees in that State cannot
register or maintain an existing registration under the Federal system. They instead must use the
appropriate State licensing and registration system, or if the State does not have such a system,
the licensing and registration system established by the Department of Housing and Urban
Department (HUD) for mortgage loan originators and their employees.22 In addition, NCUA‟s
final rule requires that the State supervisory authorities who seek to have non-federally insured
credit unions in their states participate in the Federal registration system enter into the applicable
22
HUD published its proposed rule to establish this system on December 15, 2009. See 74 FR 66548.
16

17. agreement with NCUA on or before the date the Agencies provide in a public notice that the
Registry is accepting initial registrations.
Finally, NCUA acknowledges that, while it is an added requirement for non-federally
insured credit unions to have their State supervisory authorities enter into an agreement with
NCUA, this is necessary to have any oversight or enforcement authority at all over these entities.
Absent any agreement, non-federally insured credit unions cannot participate in the Federal
registration system. They are not subject to a Federal regime of examination and supervision,
and are unlike any other Agency-regulated depository institutions covered under this rule.
Therefore, they are subject to a different procedure to participate in the same Federal registration
system.
Section 1507 of the S.A.F.E. Act (12 U.S.C. 5106) requires the Federal banking agencies
to make such de minimis exceptions “as may be appropriate” to the Act‟s registration
requirements.23 Paragraph (c)(2) of § ___.101 of the proposed rule provided a de minimis
exception based on an individual‟s and, in the aggregate, an institution‟s total number of
residential mortgage loans originated in a rolling 12-month period. Specifically, the proposal
provided that the registration requirements would not apply to an employee of an Agency-
regulated institution if, during the last 12 months: (1) the employee acted as a mortgage loan
originator for 5 or fewer residential mortgage loans; and (2) the Agency-regulated institution
23
See S.A.F.E. Act at sections 1507(c) (12 U.S.C. 5106(c)) (de minimis exceptions), 1504(a)(1)(A) (12
U.S.C. 5103(a)(1)(A)) (requirement to register), 1504(a)(2) (12 U.S.C. 5103(a)(2)) (requirement to obtain a unique
identifier). As discussed in the Supplementary Information section of the proposed rule, the FCA has authority
under section 5.17(a)(11) of the Farm Credit Act of 1971, as amended, 12 U.S.C. 2252(a)(11), to apply the de
minimis exception to FCS institutions. Section 5.17(a)(11) of the Farm Credit Act authorizes the FCA to “exercise
such incidental powers as may be necessary or appropriate to fulfill its duties . . . .” In this case, the FCA is
exercising its incidental powers to fulfill the requirement in the S.A.F.E. Act that it work together with the Federal
banking agencies to develop and maintain a system for registering residential mortgage loan originators at Agency-
regulated institutions with the Registry. A coordinated and uniform approach to the de minimis exception among
the Agencies is appropriate because it best fulfills the objectives of the S.A.F.E. Act.
17

18. employs mortgage loan originators who, while excepted from registration pursuant to this
section, in the aggregate, acted as a mortgage loan originator in connection with 25 or fewer
residential mortgage loans.
The Agencies received many, and varied, comments on this de minimis exception. Most
commenters supported an exception to the rule‟s requirements. However, a majority of the
commenters did not agree with the proposal‟s formulation of this exception, nor did they agree
on an alternative. Specifically, some commenters requested that the Agencies raise the threshold
number of loans originated by an individual mortgage loan originator and/or the institution so
that more low-volume originators would qualify for the exception. These commenters indicated
that, because of its narrowness, too few institutions would be able to use the exception as
proposed and others would unnecessarily register employees solely to avoid accidental non-
compliance with the rule. Some, however, thought that the proposed threshold numbers were too
high, and could cause an institution to spread its originations over numerous employees to avoid
registration. Still others said that the proposed de minimis exception would be fairer, and much
easier to apply, if the threshold limitation applied only to the employee or to the institution, but
not both. A Federal government agency commenter found that the proposed definition of de
minimis would make the rule unduly burdensome on small community banks.
A number of commenters also suggested that the final rule base a de minimis exception
on a percentage of total loans or the total loan volume made at each institution, instead of the
number of loans. Some trade associations and smaller institutions requested that the de minimis
exception be based on an institution‟s asset-size, with suggestions ranging from the Home
18

19. Mortgage Disclosure Act24 threshold for institutions regulated by a Federal banking agency,
currently set by the Board at $39 million in assets,25 to $1 billion, which would be consistent
with exceptions for small institutions in other provisions of law. Other commenters opposed an
asset-based approach, with larger Agency-regulated institutions noting that the exceptions should
not be structured to benefit only small institutions.
Other commenters wanted the exception to be applied to institutions with no prior history
of mortgage origination fraud or to institutions with good performance histories from previous
supervisory examinations, regardless of the number of loans originated. Some commenters also
suggested that the exception should apply only to individuals who do not regularly or principally
function as a mortgage loan originator. Some commenters noted that the exception could instead
be based on the percentage of time an employee spends engaged in the origination of residential
mortgage loans.
The Agencies also received conflicting comments on whether to aggregate a subsidiary's
loans with the parent institution for determining de minimis qualification. One commenter
opposed such aggregation, while another stated that an institution should be required to
aggregate its loan data with that of its subsidiaries so that institutions could not “game” the
system by creating new subsidiaries each time a subsidiary approaches the de minimis limit.
Still other commenters pointed out that it would be very time consuming and burdensome to
game the de minimis limit – rendering gaming opportunities essentially unrealistic.
Many commenters noted the complexity of the proposed exception. One commenter
stated that the de minimis exception would not have any significant effect because the
24
12 U.S.C. 2801 et seq.
25
See 12 CFR 203.2 (Regulation C).
19

20. complexity of complying with it would outweigh its benefits. Others noted that the proposed
exception would be difficult for an institution to monitor and maintain. Some commenters
appeared to misinterpret the proposed aggregate exception.
The Agencies agree that the de minimis exception should be simplified, and, in particular,
that it should be structured so that it may be utilized by an individual who does not regularly or
principally function as a mortgage loan originator employed by any Agency-regulated institution,
regardless of the size or loan volume of the institution. Therefore, the final rule eliminates the
aggregate exception and includes only the first prong of the proposed de minimis exception,
which applies only to individuals. The final rule also provides that this exception only applies if
the employee has never before been registered or licensed though the Registry.
Final § ___. 101(c)(2) thus provides that the registration requirements of this section do
not apply to an employee of an Agency-regulated institution who has never been registered or
licensed through the Registry as a mortgage loan originator and who has acted as a mortgage
loan originator for 5 or fewer residential mortgage loans during the last 12 months. In order to
prevent manipulation of the registration requirement by structuring this exception to apply to
multiple employees who each would not meet the exception‟s threshold for registration, the final
rule prohibits any Agency-regulated institution from engaging in any act or practice to evade the
limits of the de minimis exception. The Agencies believe that replacing the proposed institution
limit with this anti-evasion prohibition is appropriate and will discourage circumvention of
registration requirements without increasing an institution‟s administrative burden.
Monitoring compliance with the exception as revised should be less burdensome for
Agency-regulated institutions. In addition, in the Agencies‟ view, this revised exception better
balances the usefulness of the exception to Agency-regulated institutions and their mortgage loan
20

21. originators with the consumer protection and fraud prevention purposes of the S.A.F.E. Act.
Although the final rule specifically applies this anti-evasion provision to the de minimis
exception, Agency-regulated institutions must not engage in any act or practice to evade any
other requirement of the S.A.F.E. Act or this final rule.
The Agencies note that, as with the proposal, an employee must register with the Registry
prior to engaging in mortgage loan origination activity that exceeds the exception limit. In
addition, the Agencies note that the de minimis exception contained in the final rule is voluntary;
it does not prevent a mortgage loan originator who meets the criteria for the exception from
registering with the Registry if the originator chooses to do so or if his or her employer requires
registration.
The Agencies note that the Federal Housing Finance Agency (FHFA) has directed Fannie
Mae and Freddie Mac to require all mortgage loan applications taken on and after July 1, 2010,
to include the mortgage loan originator‟s unique identifier.26 Agency-regulated institutions
should be aware of this requirement and any future guidance that FHFA may issue to address the
Agencies‟ implementation of the Federal registration process, including the de minimis
exception.
The Agencies received a comment from one large financial institution requesting that we
clarify whether the failure of a mortgage loan originator to register pursuant to this rulemaking
has any substantive impact on a mortgage loan made by an institution that employs that
originator. Neither the S.A.F.E. Act nor this subpart provides that a mortgage loan originator‟s
26
See FNMA LL 02-2009: New Mortgage Loan Data Requirements (02/13/09). The Agencies, however,
expect that FHFA will provide some flexibility with this deadline, and perhaps establish a transition period to reflect
the readiness of the Registry to begin accepting Federal registrations and this final rule‟s initial registration period.
21

22. failure to register as required affects the validity or enforceability of any mortgage loan contract
made by the institution that employs the originator.
A few commenters suggested that in addition to the registration requirements, the final
rule should impose educational and testing requirements on mortgage loan originators, as the
S.A.F.E. Act does for State-licensed originators. The Agencies decline to impose such
requirements. The S.A.F.E. Act does not include educational or testing requirements for
mortgage loan originators employed by Agency-regulated institutions. In addition, as noted
previously, the statute imposes different requirements on mortgage loan originators employed by
Agency-regulated institutions. The Agencies note that these institutions already are subject to
extensive Federal oversight, including regular on-site examination of their mortgage lending
activities.
Section ___.102 - Definitions
Section ___.102 defines the terms used in the final rule. If a term is defined in the
S.A.F.E. Act, the Agencies generally have incorporated the same definition in the final rule. The
final rule also includes other definitions currently used by the NMLS in order to promote
consistency and comparability, insofar as is feasible, between Federal registration requirements
and the States‟ licensing requirements.
Annual renewal period. Proposed § __.102(a) required that a mortgage loan originator
renew his or her registration annually during the annual renewal period and defined this period as
November 1 through December 31 of each year. This is the same annual renewal period
currently provided by the NMLS to mortgage loan originators regulated by a State.
This time period for renewals generated many comments. A few commenters suggested
that the renewal period for Agency-regulated institutions should be at a different time of year
22

23. than for originators regulated by a State. Others stated that the renewal period should be based
upon the original registration date or original hire date, noting that a staggered registration
process would be less burdensome for the Registry. Another commenter suggested that the
employing institution determine its own renewal period for its employees. Still other
commenters requested that this renewal period be lengthened from 60 to 90 days.
The Agencies decline to change the dates for the annual renewal period. As indicated
above, the current system for originators regulated by a State is configured for an annual renewal
period from November 1 through December 31. A different renewal period for originators
employed by Agency-regulated institutions would involve functionality changes to the existing
system, adding costs and lengthening the implementation time. In addition, the Agencies note
that different renewal periods could cause confusion and added burden to those originators who
may work for both a State-regulated and Agency-regulated institution or who may switch from a
State-regulated institution to an Agency-regulated institution during the year, and to employers
of such originators, as well as for institutions that control both State- and Agency-regulated
institutions. For these same reasons, the Agencies also decline to increase the renewal period
from 60 to 90 days. Therefore, the final rule retains the proposed renewal period of November 1
through December 31 of each year.
Mortgage loan originator. The proposed definition of “mortgage loan originator” was
based on the definition of the term “loan originator” included in the S.A.F.E. Act at section
1503(3) (12 U.S.C. 5102(3)). As defined by the S.A.F.E. Act, this term means an individual who
takes a residential mortgage loan application and offers or negotiates terms of a residential
mortgage loan for compensation or gain. The term does not include an individual who is not a
mortgage loan originator and: (1) performs purely administrative or clerical tasks on behalf of an
23

24. individual who is a mortgage loan originator; (2) performs only real estate brokerage activities
(as defined in section 1503(3)(D) of the S.A.F.E. Act (12 U.S.C. 5102(3)(D))27 and is licensed or
registered as a real estate broker in accordance with applicable State law, unless the individual is
compensated by a lender, a mortgage broker, or other loan originator or by any agent of such
lender, mortgage broker, or other mortgage loan originator; or (3) is solely involved in
extensions of credit related to timeshare plans, as that term is defined in 11 U.S.C. 101(53D).28
For purposes of the definition of mortgage loan originator, section 1503(3)(C) of the
S.A.F.E. Act (12 U.S.C. 5102(3)(C)) defines “administrative or clerical tasks” to mean: (1) the
receipt, collection, and distribution of information common for the processing or underwriting of
a loan in the mortgage industry; and (2) communication with a consumer to obtain information
necessary for the processing or underwriting of a residential mortgage loan. The proposal
included this definition as well, with one nonsubstantive difference – the proposal used the
phrase “residential mortgage industry” instead of “loan in the mortgage industry” in the first
prong of the definition.
27
The S.A.F.E. Act defines “real estate brokerage activity” to mean any activity that involves offering or
providing real estate brokerage services to the public, including: (i) acting as a real estate agent or real estate broker
for a buyer, seller, lessor, or lessee of real property; (ii) bringing together parties interested in the sale, purchase,
lease, rental, or exchange of real property; (iii) negotiating, on behalf of any party, any portion of a contract relating
to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing
with respect to any such transaction); (iv) engaging in any activity for which a person engaged in the activity is
required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and (v)
offering to engage in any activity, or act in any capacity, described in clause (i), (ii), (iii), or (iv), above. S.A.F.E.
Act at section 1503(3)(D) (12 U.S.C. 5102(3)(D)) Nothing in this rule would constitute an authorization for
Agency-regulated institutions to engage in real estate brokerage, or any other activity, for which the institution does
not have independent authority pursuant to Federal or State law, as applicable.
28
“Timeshare plan” is defined in 11 U.S.C. 101(53D) as an interest purchased in any arrangement, plan,
scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in
common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a
purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites,
whether improved or unimproved, for a specific period of time less than a full year during any given year, but not
necessarily for consecutive years, and which extends for a period of more than three years. A "timeshare interest" is
that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations,
facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.
24

25. The Agencies included an appendix to the proposal that listed examples of the types of
activities the Agencies consider to be both within and outside the scope of residential mortgage
loan origination activities. The final rule retains this appendix with certain changes as discussed
in this SUPPLEMENTARY INFORMATION section. Individuals who receive “compensation
or gain” as used in the definition of mortgage loan originator and described in this appendix
include individuals who earn salaries, commissions or other incentive, or any combination
thereof.
The Agencies specifically requested comment on whether the definition of “mortgage
loan originator” should cover individuals who modify existing residential mortgage loans,
engage in approving loan assumptions, or engage in refinancing transactions and, if so, whether
these individuals should be excluded from the definition. While a few commenters believed the
Agencies should cover individuals engaged in such transactions, the majority of commenters on
this issue stated that this rulemaking should not cover these individuals. In general, they
indicated that mortgage loan modifications and assumptions are very different from mortgage
loan originations, and that employees engaged in these transactions do not meet the S.A.F.E.
Act‟s definition of mortgage loan originator. Specifically, commenters indicated that these
employees neither accept residential mortgage loan applications nor negotiate the terms of a new
residential mortgage loan. Instead, they renegotiate an existing loan with the goals of mitigating
any loss to the institution and, in the case of modifications, providing the borrower with a more
affordable payment option or other type of modification, or, in the case of assumptions, replacing
the party responsible for repaying the mortgage loan. Many commenters indicated that their
employees who engage in modifications and assumptions do not ever originate mortgage loans,
and that modifications and assumptions are performed in different departments of the institution.
25

26. Many commenters also noted that applying the S.A.F.E. Act‟s registration requirements to
employees engaged in loan modifications and assumptions could significantly hamper loan
modification efforts.
The determining factor in whether the S.A.F.E. Act applies to residential mortgage loan-
related transactions is whether the employee engaged in the transaction meets the definition of
“mortgage loan originator.” In general, neither modifications nor assumptions result in the
extinguishment of an existing loan and the replacement by a new loan, but rather the terms of an
existing loan are revised or the loan is assumed by a new obligor. Thus, Agency-regulated
institution employees engaged in these activities typically do not take loan applications, within
the meaning of the S.A.F.E. Act. Therefore, the Agencies conclude that the S.A.F.E. Act‟s
definition of “mortgage loan originator” generally would not include employees engaged in loan
modifications or assumptions because they typically would not meet the two-prong test of this
definition. However, if an employee engaged in a transaction labeled a loan “modification” or
“assumption” can be found to meet the definition of “mortgage loan originator,” due to the
nature of the specific transaction in question, he or she would be subject to the S.A.F.E. Act and
this final rule. The substance of a transaction, not the label attached to it, is determinative of
whether the Agency-regulated institution employee associated with it is a mortgage loan
originator for purposes of this rule. For example, the Agencies believe that Agency-regulated
institution employees engaged solely in bona fide cost-free loss mitigation efforts which result in
reduced and sustainable payments for the borrower generally would not meet the definition of
“mortgage loan originator.” In this regard, it should be noted that third parties involved in
foreclosure prevention activities for compensation or gain, although outside the scope of this
rulemaking, may be subject to licensing and registration pursuant to State law.
26

27. The Agencies sought comment on whether the individuals who engage in certain
refinancing transactions, specifically cash-out refinancing with the same lender, should be
excluded from the definition of residential mortgage loan originator. Some industry commenters
did not believe that such an exclusion was appropriate primarily because of the nature of a
refinancing as a new loan and the potential for consumer abuse in these transactions. Other
commenters also requested that we exclude individuals engaged in refinancings from the final
rule‟s definition of mortgage loan originator, and that refinancings be excluded from the final
rule‟s definition of residential mortgage loan, if the refinancing involves the same lender and the
borrower obtained no cash proceeds. We decline to make this change. Refinancings are new
loans, regardless of the lender, the loan terms, or proceeds, that involve a new application and an
offer or negotiation of new loan terms. If an individual engaged in a refinancing transaction of a
residential mortgage loan meets the two prongs of the definition of mortgage loan originator, he
or she must comply with the requirements of the S.A.F.E. Act and this final rule.29
Other commenters suggested that the Agencies exclude loan servicing personnel from the
requirements of this rulemaking. We decline to take this suggested approach because the
S.A.F.E. Act definition is based on the activities of mortgage loan origination, rather than the job
classification of the individual. An individual, regardless of job title, is a mortgage loan
originator if he or she engages in the activities of mortgage loan origination within the meaning
of the S.A.F.E. Act. For example, if a loan servicing employee of an Agency-regulated
institution mainly performs loan servicing activities but also occasionally engages in residential
mortgage loan origination, that person is a mortgage loan originator, regardless of whether he or
29
Some commenters noted that the Agencies should require only one mortgage loan originator for each
mortgage loan. The Agencies decline to take this approach because the S.A.F.E. Act defines a mortgage loan
originator according to the two-prong test set forth in the statute.
27

28. she is called “servicing personnel.” On the other hand, for example, as discussed above in
connection with loan modifications, a loan servicing employee engaged solely in bona fide cost-
free loss mitigation efforts which result in reduced and sustainable payments for the borrower
generally would not meet the definition of “mortgage loan originator.” Loan servicing
employees of Agency-regulated institutions must comply with the registration requirements of
the final rule if they meet both prongs of the definition of “mortgage loan originator,” unless they
qualify for the de minimis exception under § ___.101(c)(2) of the final rule. Some commenters
requested clarification that, when a servicing employee of an Agency-regulated institution works
with a borrower to collect unpaid taxes or other costs pursuant to a repayment or collection plan,
the employee is not acting as a mortgage loan originator under the Agencies‟ rules. The
Agencies agree that such activities would generally not meet the two-prong test of this definition.
Some commenters asked the Agencies to explain whether the S.A.F.E. Act and this rule
applied to residential mortgage loan originations made through an automated underwriting
system, whereby an applicant inquires about, applies for, and/or receives a decision on an
application electronically through an institution‟s Web site.30 Although some institutions may
choose to establish an automated system to collect application information and make an initial
decision on a loan application, from a risk management and compliance perspective, an
institution is expected to set the system parameters and monitor system output for compliance
with various laws, regulations, and guidance on an ongoing basis. Such institutions are expected
to register employees involved in that process who meet the definition of “mortgage loan
30
Section 107(5)(A)(x) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(x)) requires all loans to be
approved by a credit committee or loan officer. For all federal credit unions, and to the extent state chartered credit
unions operate under a similar State law or regulation, the statutory and regulatory definition of mortgage loan
originator is met and the S.A.F.E Act does apply.
28

29. originator,” as appropriate. The Agencies note, as indicated above, that the FHFA has directed
Fannie Mae and Freddie Mac to require all mortgage loan applications taken on and after July 1,
2010, to include the mortgage loan originator‟s unique identifier.31 Institutions should keep
apprised of any future guidance FHFA may issue to address this requirement.
For the reasons discussed above, the final rule includes the definition of “mortgage loan
originator” as proposed, with one technical change to the definition of “administrative or clerical
tasks” to make it identical to the definition of this term in section 1503(3)(C) of the S.A.F.E. Act
(12 U.S.C. 5102(3)(C)).
Nationwide Mortgage Licensing System and Registry or Registry. Section ___.102(c) of
the proposed rule‟s definition of these terms is based on the definition included in section
1503(5) of the S.A.F.E. Act (12 U.S.C. 5102(5)). Specifically, these terms mean the system
developed and maintained by CSBS and the AARMR for the State licensing and registration of
State-licensed mortgage loan originators and the registration of mortgage loan originators
pursuant to section 1507 of the S.A.F.E. Act (12 U.S.C. 5106). As explained above, CSBS and
the AARMR have established an online system, NMLS, that currently supports the licensing and
registration of mortgage loan originators regulated by a State. The Agencies are working with
CSBS to modify the NMLS to support the registration of mortgage loan originators employed by
Agency-regulated institutions, and will rename this system the Nationwide Mortgage Licensing
System and Registry. The Agencies received no comments on this definition and adopt it as
proposed.
31
See FNMA LL 02-2009: New Mortgage Loan Data Requirements (Feb. 13, 2009). The Agencies,
however, expect that FHFA will provide some flexibility with this deadline, and perhaps establish a transition period
to reflect the readiness of the Registry to begin accepting Federal registrations and this final rule‟s initial registration
period.
29

30. Registered mortgage loan originator. Pursuant to section 1503(7) of the S.A.F.E. Act (12
U.S.C. 5102(7)), the proposed rule defined this term to mean any individual who meets the
definition of mortgage loan originator, is an employee of an Agency-regulated institution, and is
registered pursuant to the requirements of this rule with, and maintains a unique identifier
through, the Registry. This definition is the same as that included in the S.A.F.E. Act, except
that the Agencies have modified it to apply only to individuals registered pursuant to regulations
issued by the Agencies. The Agencies received no comments on this definition and adopt it as
proposed.
Residential mortgage loan. As in section 1503(8) of the S.A.F.E. Act, (12 U.S.C.
5102(8)), the proposal defined “residential mortgage loan” as any loan primarily for personal,
family, or household use that is secured by a mortgage, deed of trust, or other equivalent
consensual security interest on a dwelling (as defined in section 103(v) of the Truth in Lending
Act (TILA) (15 U.S.C. 1602(v))32 or residential real estate upon which is constructed or intended
to be constructed a dwelling. In addition, the proposal specifically included refinancings, reverse
mortgages, home equity lines of credit and other first and second lien loans secured by a
dwelling in this definition in order to clarify that originators of these types of loans are covered
by the rule‟s requirements.
One commenter suggested that ancillary liens on an underlying mortgage loan or liens
taken to provide consumers with potential tax advantages should not be considered residential
mortgage loans. In addition, another commenter asked that the definition of residential mortgage
32
TILA defines “dwelling” as a residential structure or mobile home which contains one-to-four family
housing units, or individual units of condominiums or cooperatives. 15 U.S.C. 1602(v). Board regulations and
commentary include in this definition any residential structure that contains one to four units, whether or not that
structure is attached to real property, and includes an individual condominium unit, cooperative unit, mobile home,
and trailer, if it is used as a residence. See 12 CFR 226.2(a)(19) (Regulation Z).
30

31. loan include an exception to exclude seller-sponsored financing of the sale of lender-owned
property. The Agencies decline to adopt these exclusions to the definition of “residential
mortgage loan” and adopt this definition as proposed. These types of loans clearly fall within the
statutory definition of “residential mortgage loans,” and the S.A.F.E. Act makes no exceptions
for these two situations. We do clarify, however, that this definition does not include loans for
business, commercial, or agricultural purposes that use as collateral property that meets the
definition of a “dwelling.”
As indicated in the SUPPLEMENTARY INFORMATION section to the proposed rule,
the FCA emphasizes that section 1503(8) of the S.A.F.E. Act (12 U.S.C. 5102(8)) and
§ ___.102(e) do not amend or supersede sections 1.11(b) and 2.4(b) of the Farm Credit Act of
1971, as amended (12 U.S.C. 2019(b) and 2075(b)), and their implementing regulation, 12 CFR
613.3030(c), which establish the purposes for which FCS institutions may originate residential
mortgage loans for eligible rural home borrowers.
Unique Identifier. The proposed rule‟s definition of this term was almost identical to that
in section 1503(12) of the S.A.F.E. Act (12 U.S.C. 5102(12)). The Agencies received no
comments on this definition and adopt it as proposed. Specifically, the final rule defines “unique
identifier” to mean a number or other identifier that: (1) permanently identifies a registered
mortgage loan originator; (2) is assigned by protocols established by the Registry and the
Agencies to facilitate electronic tracking of mortgage loan originators, and uniform identification
of, and public access to, the employment history of and the publicly adjudicated disciplinary and
enforcement actions against mortgage loan originators; and (3) must not be used for purposes
other than those set forth in the S.A.F.E. Act.
31

32. Other terms. The Agencies note that § ___.103(d) of the proposed and final rule uses the
terms “control” and “financial services-related” in the descriptions of the information that is
required of an employee who is a mortgage loan originator. These terms are currently defined in
the Web-based MU4 form collecting information on State-licensed mortgage loan originators. In
order to promote consistency of the information collected for Agency-regulated and State-
licensed mortgage loan originators, the Agencies reiterate that the MU4 form‟s definitions of
those two terms will also be used in the Web-based form collecting information on Agency-
regulated mortgage loan originators and, therefore have not defined them in this rulemaking.33
A number of commenters requested that the Agencies define “employee” for purposes of
this rulemaking to provide more clarity regarding the individuals covered by the rule. Agency-
regulated institutions must have a process for identifying which employees of the institution are
required to be registered mortgage loan originators.34 As the Supreme Court has explained,
“where Congress uses terms that have accumulated settled meaning under . . . the common law, a
court must infer, unless the statute otherwise dictates, that Congress means to incorporate the
established meaning of these terms . . . . In the past, when Congress has used the term
'employee' without defining it, we have concluded that Congress intended to describe the
33
The Registry currently defines “control” as the power, directly or indirectly, to direct the management or
policies of a company, whether through ownership of securities, by contract, or otherwise. Any person that (i) is a
general partner or executive officer, including Chief Executive, Chief Financial Officer, Chief Operations Officer,
Chief legal Officer, Chief Credit Officer, Chief Compliance Officer, Director, and individuals occupying similar
positions or performing similar functions; (ii) directly or indirectly has the right to vote 10% or more of a class of a
voting security or has the power to sell or direct the sale of 10% or more of a class of voting securities; or (iii) in the
case of a partnership, has the right to receive upon dissolution, or has contributed, 10% or more of the capital, is
presumed to control that company. The Registry‟s current definition of “Financial services-related” means
pertaining to securities, commodities, banking, insurance, consumer lending, or real estate (including, but not
limited to; acting as or being associated with a bank or savings association, credit union, Farm Credit System
institution, mortgage lender, mortgage broker, real estate salesperson or agent, appraiser, closing agent, title
company, or escrow agent)..
34
See § ___.104(a).
32

33. conventional master-servant relationship as understood by common-law agency doctrine." 35
Section 7.07(3)(a) of the Restatement (Third) of Agency explains that “an employee is an agent
whose principal controls or has the right to control the manner and means of the agent‟s
performance of work.”36 The Agencies thus intend that the meaning of employee under the
S.A.F.E. Act and this rule is consistent with the right-to-control test under the common law
agency doctrine. The Agencies note in this regard that the IRS uses the common law right-to-
control test as its basis for classification of workers as employees.37 The result of this test
generally determines whether an institution files a W-2 or a 1099 for an individual. The
Agencies therefore expect an Agency-regulated institution would identify a mortgage loan
originator as an individual subject to this final rule if, following consideration of the relevant
facts, the institution determines that the individual is an employee of the Agency-regulated
institution.38
Section __.103 – Registration of mortgage loan originators
Section 1504(a) of the S.A.F.E. Act (12 U.S.C. 5103(a)) prohibits an individual who is
an employee of an Agency-regulated institution from engaging in the business of a loan
originator without registering as a loan originator with the Registry, maintaining annually such
registration, and obtaining a unique identifier through the Registry. As in the proposal and
35
Nationwide Mutual Ins. Co. v. Darden, 503 U.S. 318, 322-23 (1992) (citing Community for Creative
Non-Violence v. Reid, 490 U.S. 730, 739-40 (1989) (other citations omitted).
36
RESTATEMENT (THIRD) OF AGENCY § 7.07(3)(a) (2006).
37
IRS Publication 1779; see also Form SS-8, Determination of Worker Status for Purposes of Federal
Employment Taxes and Income Tax Withholding.
38
Agency-regulated institutions that are credit unions sometimes rely upon volunteers to originate mortgage
loans. The right-to-control test under the common law agency doctrine likewise applies to these credit unions.
Credit union management establishes the policies, procedures, and practices that volunteers use in performing their
functions. Therefore, these volunteers qualify as employees of the Agency-regulated institution for purposes of the
S.A.F.E. Act and this rule.
33

34. described more specifically below, § ___.103 of the final rule imposes the responsibility for
complying with these requirements on both the individual employee and the employing
institution. In addition, both the employee and the employing institution must submit
information to the Registry for each registration to be complete. The Agencies note that an
employee of an Agency-regulated institution who is not actively engaged in residential mortgage
loan activity is not prohibited from registering with the Registry.
Employee registration requirement. In general, § ___.103(a)(1) of the proposed rule
required an employee of an Agency-regulated institution who acts as a mortgage loan originator
to register with the Registry, obtain a unique identifier, and maintain his or her registration. This
section further provided that any employee who is not in compliance with the registration and
unique identifier requirements set forth in the proposed rule is in violation of the S.A.F.E. Act
and this rule.39 The Agencies note that this registration requirement would not apply if the
employee qualifies for the de minimis exception.
The Agencies did not receive substantive comments specifically on this section and
therefore adopt it as proposed.
Institution requirement. Proposed paragraph (a)(2) of § _____.103 provided that an
Agency-regulated institution must require its employees who are mortgage loan originators to
register with the Registry, maintain this registration, and obtain a unique identifier in compliance
with this subpart. This provision also prohibited an Agency-regulated institution from permitting
39
The OCC, Board, FDIC, and OTS have the authority to take enforcement actions against their respective
Agency-regulated institutions and individual employees of those institutions who violate the S.A.F.E. Act and this
final rule, pursuant to 12 U.S.C. 1818. The FCA has authority to take enforcement actions against Farm Credit
System institutions and individual employees who violate the S.A.F.E. Act and this final rule pursuant to Title V,
Part C of the Farm Credit Act of 1971, as amended, 12 U.S.C. 2261 et seq. The NCUA has the authority to take
enforcement actions against federally-insured credit unions and their employees who violate the S.A.F.E. Act and
this final rule under 12 U.S.C. 1786. For privately insured credit unions, memoranda of understanding between
NCUA and applicable State supervisory authorities will establish enforcement authority.
34

35. its employees to act as mortgage loan originators unless registered with the Registry pursuant to
this subpart, after the applicable implementation periods specified in §§ ____.103(a)(3) and
(a)(4)(ii) expire.
One commenter objected to this requirement as not being based on statutory language.
Although the S.A.F.E. Act does not contain the same express prohibition as in the Agencies‟
proposed rule, determining the scope of mortgage loan origination activities that subject an
individual or institution to the Act‟s requirements is well within the Agencies‟ authority to
implement the statute. The imposition of this requirement on Agency-regulated institutions
implements the purposes of the S.A.F.E. Act and ensures Agency-regulated institutions and their
employees comply with all applicable laws. This commenter also stated that this requirement
would be difficult to enforce because an employing institution may not know of the activities of
its employees outside of their scope of employment at that institution. We agree with this
commenter that the language in § __103.(a)(2)(ii) should be clarified so that an institution‟s
oversight of a mortgage loan originator applies only to the extent the originator is acting within
the scope of his or her employment at that institution. We therefore adopt § ___.103(a)(2) with
this one change.
Implementation period for initial registrations. Proposed § ___.103(a)(3) provided a 180-
day implementation period for initial registrations beginning on the date the Agencies provide
public notice that the Registry is accepting initial registrations. The Agencies have adopted this
provision as proposed with one minor change to clarify that the implementation period begins on
the date that the Agencies provide in their public notice, not the actual date of the public notice.
Pursuant to the proposal, an employee could continue to originate residential mortgage loans
35

36. without complying with the rule‟s registration requirement before and during this 180-day
period. After this 180-day period expires, any existing employee or newly-hired employee of an
Agency-regulated institution who is subject to the registration requirements would be prohibited
from originating residential mortgage loans without first meeting such requirements.
The Agencies specifically requested comment on whether this 180-day implementation
period would provide Agency-regulated institutions and their employees with adequate time to
complete the initial registration process. The Agencies also inquired as to whether an alternative
schedule for implementation and initial registrations would be appropriate, what such an
alternative schedule should be, and whether, and how, a staggered registration process should be
developed.
The Agencies received many comments on this implementation period. Some
commenters supported a 180-day period. Others supported the proposed 180-day
implementation period provided that certain conditions are met, such as excluding loan
modification and mitigation employees from the registration requirements, allowing batch
processing, simplifying the employer verification requirements, and immediate confirmation of
registration without delay for fingerprint or background check results.
Other commenters, however, stated that the proposed 180-day implementation period
would not provide sufficient time to register the large number of employees subject to the
registration requirement, properly train all employees, develop compliance policies, and program
and implement system controls. Many noted that a longer period would prevent the Registry
from being overwhelmed with registrations. Two commenters, including one Federal agency,
stated that additional time will particularly benefit smaller financial institutions. Another
commenter indicated that the time, effort, and resources required to meet new systems
36

37. requirements can be extensive, and that a 180-day implementation period for such major changes
would be extremely difficult for larger institutions. These commenters suggested an
implementation period of nine months to one year. One commenter stated that each Agency
should have the flexibility to grant additional time to register in the event the Registry becomes
backlogged or inundated with a large volume of registrations. No commenter requested a shorter
implementation period.
The Agencies understand that Agency-regulated institutions and their mortgage loan
originator employees will face certain implementation issues in complying with the registration
requirements established by this rulemaking. However, as indicated above, due to various
system modifications and enhancements required to make the existing system capable of
accepting Federal registrants, the system is not expected to be available to accept Federal
registrations until sometime in 2010. The 180-day implementation period will not begin until the
system is available to accept Federal registrations. This in effect provides institutions with an
implementation period longer than 180 days as institutions and their employees can begin to
implement the final rule‟s requirements before the Registry is operational, i.e., develop policies
and procedures, train employees, gather information needed for registration, and program and
implement system controls. In addition, CSBS and SRR will provide information to, and assist
Agency-regulated institutions in preparation for, registration during this period. The Agencies
believe that this additional time will provide mortgage loan originators, and the Agency-
regulated institutions that employ them, adequate opportunity to prepare for the registration
requirements. Any extension of the 180-day implementation period provided in the final rule
will only further delay the registration of residential mortgage loan originators and, as a result,
the consumer protection benefits of the S.A.F.E. Act. In addition, as described below, batch
37

38. processing of at least some information likely will be available, which should make the
registration process more efficient for both the institution and the registering employee. For
these reasons, the Agencies decline to provide an implementation period longer than the
proposed 180 days.
Many commenters indicated support for a staggered implementation period. Some noted
that this could be based on institution size, loan origination volume, or employee qualifiers (such
as birth date or last name). Some of these commenters, however, noted that they would support a
staggered schedule only if it would provide a registration period of equal length for all
registrants. Other commenters supported a staggered process that would give smaller institutions
or institutions that do not originate many residential mortgage loans the greatest amount of time
to comply with the requirements.
The Agencies agree that a staggered implementation process for those institutions that
prefer one would be useful. Such a process would allow institutions to register their employees
within specific time periods during the implementation period with the assistance of dedicated
staff. Staggered registration would limit the number of originators registering at any one time
and spread the registration of originators throughout the implementation period. Although such a
schedule mostly would benefit those institutions with the largest number of mortgage loan
originators, it also should enable the Registry to accommodate all registrations in a more timely
and efficient manner, thereby benefiting all institutions. Accordingly, the Agencies will work
with CSBS and SRR to develop a staggered registration schedule for institutions, in particular
those that are estimated to have a large number of mortgage loan originators subject to Federal
registration, that request such a schedule. This staggered process would occur within the 180-
day implementation period in order not to delay the registration of mortgage loan originators and
38

39. the ability of consumers to fully utilize the Registry. Because institutions that request a
staggered registration process would have a dedicated period during which to register within the
180-day period, registration burdens may be eased for these institutions, lessening their need for
the full 180-day registration period. Details on this staggered approach will be provided to
applicable institutions when they have been finalized and may include the availability of this
dedicated staff prior to the start of the registration period.
Special rule for previously registered employees. Under paragraph (a)(4) of § ___.103 of
the proposed and final rule, properly registered or licensed mortgage loan originators would not
have to register again with the Registry when they change employment by moving from one
Agency-regulated institution to another or from a State-regulated institution to an Agency-
regulated institution, regardless of whether the change in employment is made voluntarily,
through an acquisition or merger of the employee‟s prior employer, or through a reorganization
where previously State-licensed mortgage loan originators become subject to the registration
requirements of Agency-regulated institutions. Instead, the employee and employing institution
need only update information in the Registry and complete the required authorizations and
attestation.
Specifically, proposed paragraph (a)(4) of § ___.103 provided that if a new employee of
an Agency-regulated institution had previously registered with, and obtained a unique identifier
from, the Registry prior to becoming an employee of that institution and has maintained that
registration (or license, if previously employed by a non-Agency-regulated institution), the
registration requirements of this subpart are deemed to be met provided that: (1) the employee‟s
employment information in the Registry is updated and the employee has completed the required
authorizations and attestation; (2) new fingerprints of the employee are provided to the Registry
39

40. for a background check, except in the case of mergers, acquisitions or reorganizations; (3)
information concerning the new employing institution is provided to the Registry pursuant to §
___.103(e)(1)(i), to the extent the institution has not previously met these requirements, and §
___.103(e)(2)(i);40 and (4) the registration is maintained pursuant to the requirements of
§§ ___.103(b) and (e)(1)(ii) as of the date that the employee becomes employed by the
institution.
Some commenters requested that the Agencies reduce these requirements in order to
further facilitate the movement of employees from one institution to another and prevent
unnecessary interruption of mortgage origination activity. However, the Agencies believe that
the current provision adequately reduces regulatory burden on Agency-regulated institutions as
well as the residential mortgage industry when registered mortgage loan originators change
employers and will allow a mortgage origination transaction in process at the time of the
employment change to proceed smoothly. It requires less than what would be needed to
complete a new registration and requires only that information necessary to update the
employee‟s registration and confirm the identity of the originator and the employer, thereby
preventing fraudulent information from being submitted to the Registry. However, we have
amended § ___.103(a)(4)(i)(B) to provide that new fingerprints are not required to be submitted,
pursuant to § ___.103(d)(1)(ix), if the registered loan originator has fingerprints on file with the
Registry that are less than three years old. The Registry will use these existing prints for
purposes of the background check. This three-year age limit is consistent with the procedures to
be used by SRR for mortgage loan originators licensed by a State. We note that, as proposed, the
40
These provisions require: the institution‟s name; main office address; IRS Employer Tax Identification
Number; Research Statistics Supervision Discount (RSSD) number; identification of the institution‟s primary
Federal regulator; contact information for individuals at the institution for Registry purposes; applicable subsidiary
40

41. final rule does not require fingerprints or a new background check when the change in employers
is due to an acquisition, merger, or reorganization because these transactions carry a lower risk
of fraud and identity theft. The Agencies note that institutions should still conduct prudent
screening of prospective employees to confirm their identities.
In response to a comment, the Agencies note that paragraph (a)(4) of § ___.103 applies
when an employee of an Agency-regulated institution becomes an employee of another Agency-
regulated institution, regardless of whether the entities are affiliated. Similarly, when an
employee of a subsidiary of an Agency-regulated institution becomes an employee of the
institution, the requirements of § ___.103 apply.
In order to reduce regulatory burden and to prevent an interruption in mortgage
origination activity, the proposed § ___.103(a)(4)(ii) provided a 60-day grace period to comply
with the § ___.103(a)(4)(i) requirements when a registered mortgage loan originator becomes an
employee of an Agency-regulated institution as a result of an acquisition, merger, or
reorganization. Some commenters agreed that this 60-day grace period is appropriate and
provides the proper balance between implementing the purpose of the S.A.F.E. Act and
protecting consumers. Other commenters, however, requested that this period be extended to 90
or 180 days due to the complexity and protracted nature of the merger and acquisition process.
Some commenters also requested that a 60-day grace period apply to all changes in employment,
regardless of whether the change is the result of a merger or acquisition transaction.
Final § ___.103(a)(4)(ii) retains the proposed 60-day grace period for a change in
employers due to acquisitions, mergers or reorganizations. The Agencies find that 60 days is an
adequate time for institutions and their employees to update registrations in the case of these
information, and confirmation that it employs the registrant. Information regarding an institution‟s RSSD number is
41

42. transactions and agree with the commenters who stated that this time period balances the
purposes of the S.A.F.E. Act and consumer protection.
Additionally, the Agencies find that a grace period is not necessary when a mortgage loan
originator changes employers for other reasons. This situation does not raise the same
compliance burden as does an acquisition, merger, or reorganization, in which a large number of
employees are switching employers at the same time. Therefore, as proposed, the final rule
requires that these registered mortgage loan originators comply with the requirements of
§ __.103(a)(4) before they may originate residential mortgage loans for their new employer.
Another commenter requested that the Agencies permit an employer to submit one update
concerning all affected employees in the case of an acquisition, merger, or reorganization, rather
than having each individual employee submit what is largely identical information about their
change in employer. The Agencies agree that this approach would reduce burden for the
employee, institution, and the Registry. We specifically have instructed CSBS and SRR to
develop a process for these transactions that would allow the bulk transfer of business location
and contact information for all mortgage loan originators from one institution to another.
However, each individual employee still must complete the authorization and attestation for their
own updated registration record.
The Agencies adopt proposed § ___.103(a)(4) with the addition of the language discussed
above related to fingerprints in § ___.103(a)(4)(i)(B). The Agencies also have modified
§ ___.103(a)(4) to clarify that an employee of a bank who has been properly registered or
licensed as a mortgage loan originator need only update information in the Registry, and
complete the required authorizations and attestation, whether that employee is a new employee
available from the Board.
42

43. of the Agency-regulated institution or becomes subject to this subpart while an employee of the
institution.
The Agencies note that the registration of a mortgage loan originator who leaves any
employer will be recorded as inactive in the Registry until he or she is hired by another entity,
his or her record is updated in accordance with the final rule‟s requirements, and the new
employer acknowledges employing the mortgage loan originator through the Registry. The
individual will be prohibited from acting as a mortgage loan originator at an Agency-regulated
institution until such time as the registration is reactivated, unless covered by the 60-day grace
period for acquisitions, mergers, and reorganizations.
Maintaining Registration. Under proposed § ___.103(b)(1)(i), a registered mortgage loan
originator must renew his or her registration with the Registry during the annual renewal period,
November 1 through December 31 of each year. To renew, the employee must confirm that the
information previously submitted to the Registry remains accurate and complete, updating any
information as appropriate. Any registration that is not renewed during this period will become
inactive, and the individual will be prohibited from acting as a mortgage loan originator at an
Agency-regulated institution until such time as the registration requirements are met. However,
an individual who fails to update information during this period may renew his or her registration
at any time and does not need to wait until the start of the next annual renewal period. Inactive
mortgage loan originators will not be assigned a new unique identifier if they reactivate their
registration.
Some commenters opposed the requirement to renew registrations annually as overly
burdensome and unnecessary. Some suggested alternatively that a registration remain valid until
there is a change in employment status or other change that requires an update of database
43

44. information. Others recommended that the renewal be every two, three, or five years, or based
on the experience of the originator. The Agencies understand that an annual renewal process
requires an expenditure of time and resources by individual originators and their employing
Agency-regulated institutions. However, section 1504 of the S.A.F.E. Act (12 U.S.C. 5103),
requires that mortgage loan originators maintain their registration annually. Therefore, the
Agencies can not eliminate, or lengthen the time between, renewals. For this reason, the
Agencies adopt § ___.103(b)(1)(i) as proposed without revision. We note that the automated
processing of annual renewals, as more fully described below, could lessen the impact on the
resources needed for these renewals.
One commenter suggested that the final rule not require a mortgage loan originator to
renew his or her registration during this annual renewal period if registration was made less than
six months prior to the end of the renewal period. The Agencies believe this change is
reasonable and within the scope of the S.A.F.E. Act. We have amended the final rule
accordingly by adding new paragraph (b)(3) to final § ___.103. However, a mortgage loan
originator still is required to update his or her registration during this six month period if any
information provided to the Registry at the time of registration changes, pursuant to § ___
.103(b)(1)(ii), described below.
In addition to the annual renewal, proposed § ___.103(b)(1)(ii) provided that a
registration must be updated within 30 days of the occurrence of any of the following events: (1)
a change in the employee‟s name; (2) the registrant ceases to be an employee of the institution;
or (3) any of the employee‟s responses to the information required for registration pursuant to
paragraphs (d)(1)(iii) through (viii) of § ___.103 become inaccurate.
44